ISLAMABAD, July 23: Securities and Exchange Commission of Pakistan has initiated investigations into the affairs of 24 listed companies who have defaulted in paying dividend to their shareholders.

Vigilant about the conduct of the companies, the SECP Chairman Abdul Rehman Qureshi told Dawn, that the commission, sometime back, had opened investigations against a number of companies for unsatisfactory performance and non-payment of dividend to the shareholders for a number of years.

These proceedings were, however, suspended subsequently in the case of 77 companies on account of improvement in financial performance and on declaration of one-time dividend in 1999 and 2000.

The SECP, nevertheless, kept a close watch on these companies. Consequently, a recent review revealed that 53 out 77 companies were showing improved results and paying dividend to their members, whereas 24 others declared dividend only once, and that their affairs were in doldrums.

It had, therefore, been decided to commence action against such companies afresh and issue notices requiring them to explain as to why their affairs not be investigated because of their failure to pay to shareholders their due return on their investment.

Meanwhile, the SECP chairman further disclosed that as a result of strict monitoring of the listed companies by the commission, 309 out of a total of 706 listed companies had paid dividends to their shareholders by December 2002. This raised the percentage of companies paying dividend to 44 in 2002, as against 41pc companies which had paid dividend during previous year.